A penny tax for Volusia roads could be the smartest choice

Sunday

Sep 29, 2013 at 12:01 AM

Volusia should consider raising more money for roads

JOSH WAGNER

One of my favorite childhood books was “Where the Sidewalk Ends.” I am now joyfully reliving its stories, poems and illustrations through my two young sons. Author Shel Silverstein had a gift for masking mature scenarios with childlike wit and rhyme. The title poem's opening line, “There is a place where the sidewalk ends,” describes Volusia County, circa 2015, quite accurately. Sidewalk construction, as well as new road construction and road maintenance in both the county and Volusia municipalities, will soon end as we know it. This is not meant to scare you, but to inform you of a dire dilemma and make you aware of a possible solution.County and city road programs rely on two funding sources: a per-gallon gas tax and impact fees. Gas tax collections have significantly declined. The revenue we receive from the gas tax is on the gallon, not the dollar, meaning it's a much smaller percentage of the price at the pump now than it was years ago. Inflation has also greatly reduced the purchasing power of the gas tax. In addition, gas consumption has decreased as people drive less, or drive more fuel-efficient cars. These cars use less gas, but cause the same wear and tear on roads as other cars.Impact fees on new construction are the other major source of road funding. Impact fees discourage economic development and should be limited whenever possible.Also, the more we can lessen the property tax burden for our residents and businesses, the better off our community will be as well. On the surface, you may not believe we have a problem with our roads. I assure you that once funding ends, the county and our cities will not be able to build a single new road. But for argument's sake, let's agree that we will stop building new roads. Now the problem is taking care of the roads that already exist, and these roads are beginning to deteriorate. This is what I call the Head and Shoulders shampoo dilemma. In the company's commercial, a person asks: If you don't have dandruff, why do you use Head and Shoulders? The answer, duh, is pretty simple: the shampoo stops dandruff. Our existing road programs make you think there's not a problem because most of our roads have volume and sheen. But once we stop buying shampoo, you'll notice some serious dandruff in the form of potholes. I believe our community has three possible solutions. First, we could do nothing. Soon, potholes will develop on every road in Volusia County, including the road you live on. Eventually these roads will deteriorate to the point where they are no longer safe to drive, and we will have to close them.Second, the county could start funding road projects through the general fund, which would raise property taxes significantly.The third solution is for our community to pass a one-penny transportation sales tax through a referendum that could be used for county and city transportation needs. State legislators have given us this option under Florida law. It has been utilized in many other Florida counties. Not so ironically and more importantly, these counties have some of the lowest property tax rates in the state. The counties are also able to use their transportation programs as economic development drivers because many of the projects that are funded are matching projects. This means the county or city would only contribute 25 to 50 percent of the funding and the state and federal government would provide the rest. This is part of the reason why the counties that have this sales tax are experiencing more of an economic boom today. It's called leverage, and we need to use it to allow our local governments to act more like businesses.The sales tax funding could include roads and sidewalks as well as operations such as Votran. Approximately $10 million a year in property taxes is spent to subsidize Votran. If the law is written and handled properly, we could restrict the county from using property taxes to fund Votran and other transportation operations. This limitation on property taxes is the most important aspect of my proposal.I do not support a new tax, just a better way to tax.Let me repeat that: I do not support a new tax, just a better way to tax. Specifically, we can use the one-penny transportation sales tax as a way to require county government to lower (forever) property taxes. We could make it against the law for them to fund programs such as Votran through the general fund. “Where the Sidewalk Ends” sums it up this way:“Yes we'll walk with a walk that is measured and slow, And we'll go where the chalk-white arrows go, For the children, they mark, and the children, they know The place where the sidewalk ends.” With apologies to Shel Silverstein, I've added a stanza of my own to his poem:Your children are now grown and are ready to plan For the sidewalk does not have to end.It is true that this will be a defining moment for usFor this is where economic development can begin.Please join me in supporting this initiative to properly fund transportation with a one-penny transportation sales tax and significantly reduce the burden we pay in property taxes in Volusia County and our municipalities.Wagner, of Ponce Inlet, represents District 2 on the Volusia County Council.